– If we are to be able to speed up the value chains for food in Africa south of the Sahara as we wish, the companies must have the opportunity to invest in themselves. Only then can the sector’s true potential for more jobs and strengthened food security be revealed, says Development Minister Anne Beathe Kristiansen Tvinnereim in a press release from the Ministry of Foreign Affairs (MoD).
Small and medium-sized businesses in the food sector in Africa struggle to get loans, as the banks often perceive them as unprofitable and risky, says the Foreign Ministry. Climate change also increases the risk of poor crops, which makes it even more uncertain for banks to give loans to such companies.
That is why Norad is now investing NOK 100 million in the organization Aceli Africa, which works with the banks to reduce the risk by providing loans to smaller companies. The organization operates in Kenya, Uganda, Tanzania, Rwanda and Zambia.
The investment can give 4,000 companies access to financing and will have a positive impact on almost 700,000 small farmers, writes UD.
– We can create more development for every aid kroner we spend by using the aid so that small businesses can grow, says Kristiansen Tvinnereim.
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2024-07-26 00:35:29
